Guyana has every right to exploit its oil reserves

For ‘developed’ countries to suggest otherwise is irrational.

Over the Easter weekend, a clip from the BBC’s HARDtalk interview with journalist, Stephen Sackur, and president of Guyana, Mohamed Irfaan Ali, went viral on X, formerly known as Twitter. I highly recommend watching the full twenty-four minute interview on BBC iPlayer. It covers many talking points regarding Guyana’s newfound oil wealth, including its territorial dispute with Venezuela. Better yet, read Discovering Development’s recent country profile of Guyana here.

The interview’s standout moment began when the duo broached the topic of environment and the detrimental effects of Guyana’s oil production. After President Irfaan Ali commented that Guyanese people have consistently protected their rainforest, Sackur asked whether that gives Guyana the right to release so much carbon. To which, the President countered, “does that give you the right to lecture us on climate change? I am going to lecture you on climate change, because we have kept this forest alive that stores 19.5 gigatonnes of carbon, that you enjoy”.

Development

The President gave a compelling speech, in which he lambasted the hypocrisy of the developed countries that have destroyed the environment since the industrial revolution. He also acknowledged that Guyana is aggressively pursuing oil production to develop the country and create opportunities for its people.

I too find it enormously hypocritical for any developed country, now pursuing environmentally sustainable development, to scold a developing nation powering essential improvements with its own fossil fuels. Have most developed countries not advanced by using fossil fuels in the past (while also benefitting from the natural resources of former colonies, like Guyana)? It is not the fault of climate vulnerable countries such as Guyana that the world is now in this position.

Guyana has been independent since 1966 yet remained one of the poorest countries in the Americas for decades. Its poverty rate is over 40%. Oil has brought massive opportunities. In the midst of this, the government had the foresight to direct oil revenues into its Low Carbon Development Strategy 2030.

 In the fourth quarter of 2023, the government received royalties and profits of over US$570 million. More than double the value of its REDD+ deal.

Environmental agreements

Unmentioned in the interview was the fact that Guyana previously tried to take a more ‘environmentally friendly’ route to development. In 2009, the government signed a REDD+ (reducing emissions from deforestation and forest degradation) agreement with Norway. In exchange for sustaining its low deforestation rates, the Norwegian government agreed to pay Guyana over US$250 million. This was remitted over the course of ten years.

However, oil has already generated more revenue for Guyana since 2020 than REDD+ did in ten years. In the fourth quarter of 2023, the government received royalties and profits of over US$570 million. More than double the value of its REDD+ deal.

Additionally, the Paris Agreement, which pledged to raise US$100 billion to support countries that have contributed the least to climate change but are most affected, did not fulfil its promise.

Guyana’s turn

Guyana’s story exemplifies why discussions concerning approaches to climate change and development should not generalise. Whether certain manoeuvres are deemed acceptable cannot follow blanket rules. Every country comes with its own unique history and circumstances. Yes, Guyana is vulnerable to climate change. It still needs money to fund its own climate preparedness and adaptation, as President Irfaan Ali also pointed out. When such a major opportunity presents itself, how can it be ignored?

I shall end with a quote from Ayodele Dalgety-Dean, executive director of Guyanese community development company, SisPro Inc.. It comes from another segment on BBC HARDtalk (also well worth a watch):

“For me, it makes absolute sense that we exploit our resources to build and develop our country. No one else is going to do it, and I don’t think we should expect anyone else to do it. My challenge would be that the western countries – or the countries that are developed – they have a responsibility to stop doing what they’re doing, so that we can do what we are doing. And that evens things up. It’s absolutely Guyana’s turn… It is our time, and we deserve to be developed”.

Ayodele Dalgety-Dean – SisPro Inc.

It is fair to say that developed countries should lead the charge by making changes internally, since they have benefitted from carbon-emitting activities the most. Simultaneously, developing countries, such as Guyana, should be able to finally develop their own infrastructure and social services.

Correction: a previous version of this article incorrectly stated that Norway had offset its own carbon emissions under the Norway-Guyana REDD+ agreement. However, the deal represented a donor-recipient relationship.

Featured image credit: Tom Fisk.